Ether, the native coin of the Ethereum network, officially turned deflationary 55 days after The Merge — its transition from proof-of-work to proof-of-stake.
The post-Merge supply of ether has declined by over 400 ETH ($469,000), as of 5:35 a.m. ET, according to the Ethereum supply tracking website ultrasound.money. Ethereum’s deflation rate is currently 0.001% annually.
Were the Merge never to have taken place and Ethereum remained proof-of-work, the total supply of ether would have increased by over 650,000 ETH ($762 million) with an inflation rate of nearly 3.6%.
Though Ethereum proponents are widely pleased to see the total ether supply decrease, it comes at a worrying time for the blockchain and cryptocurrency industry. Following a withdrawal freeze, FTX announced its intention to sell to rival crypto exchange Binance after apparently turning insolvent. The high-profile event has spurred selling in the crypto markets as fears of widespread contagion spread.